Options for independent contractor...tax related. (unemployment, costs, legal)

[Mystery123]

After 5 months of unemployment, I recently started a job on 1099.
A friend suggested that I open a company to save in tax.
How does that work?
Thanks for suggestions.

[2bindenver]

Talk to a CPA.

[jwiley]

you need to talk to a competent accountant, but unless you plan on setting up a S corp and jumping through all the hoops for that S corp than there is usually no need to set up a company. single member LLCs and sole proprietorships are treated the same and go on the same schedule C, and there is no tax benefits to actually paying the costs to set up a business if you are only contractor with a company or two. There are some legal benefits, but to know if that is worth the cost I would have to know what you are doing, as if it is a simple contractor position doing something in IT or such than I doubt you will be getting sued.

[Mystery123]

Thanks for comments.
It's a short IT project.